Why Hasn’t XRP’s Price Risen Despite the Arrival of ETFs?

Jakarta, Pintu News – The cryptocurrency market is always full of unexpected dynamics. One of the most recent examples is the situation faced by Ripple (XRP), where despite a significant increase in interest from exchange-traded funds (ETFs), the price of XRP is not showing a significant increase. This article will explain some of the factors that may have influenced this.

Why ETFs aren’t boosting XRP price

According to analyst Rector in a Paul Barron Podcast interview, while there has been an increase in ETF purchases, this has not directly impacted the market price of XRP as most ETF purchases are made over the counter (OTC), rather than on public exchanges. These OTC transactions do not necessarily reflect price changes in the public market as they are not directly recorded in the market.

In addition, Rector added that the current market dynamics do not support significant price increases just because of ETF transactions. The cryptocurrency market is heavily influenced by sentiment and liquidity, which can change quickly and without warning.

Also read: Can Shiba Inu Turn $1,000 into $1 Million Again Like 2021?

Withdrawals from Exchanges Balance ETF Purchases

Rector also revealed that there was an $808 million withdrawal from centralized exchanges in November. Investors sold their XRP for dollars or stablecoins, which created selling pressure in the market. This has been one of the factors keeping XRP prices low despite the increased interest in ETFs.

These massive withdrawals suggest that despite optimism in some segments of the market, there is still considerable concern among investors who prefer to secure their assets in a more stable form.

Also read: XRP Price Update Today (12/15): Potential to Rise in 3-6 Months? EGRAG Crypto Analysis

Price Increase Potential Still Exists

Although there are several factors holding back XRP’s price increase, Rector is still optimistic about the potential for future price increases. Analysis of past market data shows that XRP still has the ability to move quickly when market sentiment turns positive.

Rector also emphasized that there is strong buying interest below $2, which suggests that there is solid price support at that level. This could be an indicator that the price of XRP will not drop to $1, a scenario that Rector considers highly unlikely.

Conclusion

Despite increased interest in ETFs that invest in Ripple (XRP), factors such as over the counter transactions and massive withdrawals from exchanges have held back price gains. However, analysis suggests that there is upside potential if market conditions are favorable. Investors are advised to constantly monitor market dynamics and conduct in-depth analysis before making investment decisions.

FAQ

What are ETFs and how do they affect the price of XRP?

ETFs or exchange-traded funds are investment products that allow investors to purchase shares of a fund that follows an index, commodity, bond, or other asset pool. While ETFs may increase interest in certain assets such as Ripple (XRP), purchases made over the counter (OTC) may not directly affect market prices.

Why are investors withdrawing funds from exchanges?

Investors may withdraw funds from exchanges to secure their assets in more stable forms such as dollars or stablecoins, especially if they feel uncertain about the current market outlook or want to reduce their risk.

Is it possible for the XRP price to drop back to $1?

According to Rector analysts, it is highly unlikely that the price of Ripple (XRP) will drop back to $1, given the strong price support below $2 and the potential for price increases if market conditions are favorable.

What is an over the counter (OTC) transaction?

Over the counter (OTC) transactions are transactions conducted outside of a centralized exchange. These transactions usually involve two parties negotiating directly without the involvement of the public or open market, which can affect market visibility and prices.

How should investors respond to the current situation?

Investors are advised to constantly monitor market dynamics and conduct in-depth analysis before making investment decisions. Understanding the factors affecting the price of XRP and the cryptocurrency market in general can help in making informed decisions.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Coinpedia. Analyst Reveals Whether XRP Price Could Ever Fall Back to $1. Accessed on December 15, 2025.
• Featured Image: U Today